No action against cut-price supermarket beer

October 31, 2007: Landlords will be disappointed that the Competition Commission will take no action against shops selling cut-price alcohol.

The commission reported today following an 18-month inquiry into the groceries market and had a double whammy for under-pressure pubs. It wants to actually see more supermarkets to provide fairier competition between chains.

The report says that: "Below-cost selling by national retailers is not part of a predatory strategy aimed at convenience stores or specialist stores and is not having significant unintended effects on smaller stores." What it doesn't mention, of course, is the effect on pubs.

One recent radio ad for a high street supermarket urged drinkers to "forget about the pub this weekend" and stock up on cheap beer to drink at home with their friends.

The fight goes on, however, and landlords and pubcos will be eagerly awaiting the outcome of a government report into alcohol pricing and promotions due to be published next year.

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